Kuala lumpur: Dewan Rakyat has successfully passed the International Mediation Bill, marking a strategic step by the MADANI Government to strengthen alternative dispute resolution (ADR) mechanisms instead of relying solely on court proceedings.

According to BERNAMA News Agency, the Mediation Act 2012 (Act 749) currently applies mainly to domestic disputes, such as accident insurance claims, family-related matters like alimony and child custody, defamation claims, commercial contract disputes, and intellectual property cases. Although the Act can be applied to international cases, settlement agreements reached through mediation are only binding on the parties and enforceable under contract law, with no direct enforcement mechanism.

Kulasegaran noted that the UN Convention provides a harmonised framework for the recognition and enforcement of international settlement agreements arising from mediation in commercial disputes. Hence, the Bill aims to establish the necessary legal framework to fulfil Malaysia's obligations under the convention and facilitate the enforcement of international settlement agreements in the country. He said the move would promote mediation as an effective means of resolving cross-border commercial disputes.